Is an Anago franchisee permitted to transfer accounts assigned to their unit franchise?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
You are not permitted to offer, exchange or transfer Accounts that have been assigned to Your Unit Franchise or to which Your Unit Franchise has become a party by joinder except pursuant to a third-party's purchase of Your Anago business in accordance with this Agreement. You are not permitted to perform or invoice for janitorial or other services offered through Your Unit Franchise directly to those Accounts or to perform or invoice the Account for such services outside of the contract. You may however solicit and negotiate additional business with Clients assigned to You. All such additional business must be reflected on an amendment to the contract with the Account and will be subject to the provisions of the assignment of the contract, including Our appointment as Your agent for billing and collections related to the additional business. We will invoice for those services retaining Our fees earned under this Agreement. All Accounts We assign to You or to which you become a party by joinder must be serviced in accordance with the times, frequency of service and cleaning specifications as determined by the Client.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, franchisees are generally prohibited from transferring accounts assigned to their unit franchise. Specifically, Anago franchisees cannot offer, exchange, or transfer accounts that have been assigned to them or to which their unit franchise has become a party, except when a third party purchases their Anago business in accordance with the franchise agreement. This restriction ensures that Anago maintains control over its client relationships and service quality.
This policy has significant implications for Anago franchisees. It means they cannot independently sell or reassign specific client accounts to other parties, including other franchisees, without Anago's explicit approval through the sale of the entire business. This limitation protects Anago's business model, where the franchisor plays a central role in securing and distributing accounts. However, franchisees are allowed to solicit and negotiate additional business with their assigned clients, provided that any such additional business is reflected in an amendment to the contract with the client and remains subject to Anago's billing and collection processes, with Anago retaining its fees.
Furthermore, the FDD states that franchisees are not permitted to perform or invoice for janitorial or other services directly to those accounts or to perform or invoice the account for such services outside of the contract. All accounts assigned to the franchisee must be serviced according to the times, frequency, and cleaning specifications determined by the client. This ensures uniformity and quality control across the Anago franchise system.
In summary, while Anago franchisees have the opportunity to build relationships with clients and expand services, they must operate within the framework established by Anago, which includes restrictions on transferring accounts and requirements for how services are delivered and billed. These restrictions are designed to protect the integrity of the Anago brand and maintain consistent service standards.